"We intend to continue to manage the fund as usual," the statement reads.

SVXY tracks an index that shorts the VIX. When volatility is low, the fund thrives. When volatility skyrocketed on Friday and Monday and the markets suffered (the Dow fell 7.03 percent over those two days, and the S&P 500 fell 6.13 percent), the exchange-traded fund thus suffered even more, as expected. The fund's shares fell 13.21 percent on Friday, 31.99 percent on Monday, and another 82.96 percent yesterday, for a combined 89.94 percent drop since market close on Thursday. That translates into an AUM tumble of more than $1 billion, Bloomberg reports.

"The performance on Monday of the ProShares Short-Term Futures ETF (SVXY) was consistent with its objective and reflected the changes in the level of its underlying index," ProShares' statement from yesterday reads.

Meanwhile, an exchange-traded note with a similar strategy is liquidating. Yesterday Credit Suisse, despite insisting that it "has experienced no trading losses" from its VelocityShares Daily Inverse VIX Short Term ETNs (XIV), revealed that it will liquidate the ETNs on February 21 of this year (instead of December 4, 2030). Barron's, Bloomberg, CityWire, CNBC, the Financial Times, and the Wall Street Journal all reported on XIV's woes and demise.&nbsp